TMFDeej (99.04)

The Inside Scoop: Lehman is Cooked

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I just spoke with a friend of mine who works for a bank who is involved in the Lehman Brothers dicsussion and they said that both Bofa and Barclays are holding out for the government support that JP Morgan got with the Bear deal and as of right now Paulson and friends aren't willing to get involved other than in facilitating the negotiations. The government opened up this pandora's box by helping out on Bear, Fannie, and Freddy and now they are having a tough time closing it.

It looks like there is a very, very good chance that the Lehman deal won't get done tonight and that it might not be able to make it for much longer without having to file for bankruptcy. If this does indeed happen, and I would be willing to put money on the fact that it does, it could put Mr. Market in a very bad mood tomorrow.

We taxpayers can't afford anymore debt generated by corporate greed. Let Lehman go bankrupt and any of the other banks in the same position. I'm still waiting for the prosecutions and the jail sentences............

I'm not the least bit surprised by what your friend told you. Why would any bank take over a failing bank, especially one as big as Lehman brothers without some type of gov't assurance, especially since the gov't has done it before?

finally, time to buy oil. PBR is on the hitlist Deej, this is the week if you want to go in with real money to do it. Not all in, just in case there is a 10% trading curb day, but now is the time, IMO, for all the reasons I've layed out before.

Hey Doug. Like you, I am super bullish on oil long term... and despite the current situation I still believe that it will average triple digits in 2009. Having said this, there's so much momentum on the down side right now that I would not be surprised if we traded in a range of $85 to $95 for the next month or two. Short sellers are pounding on it, hedge funds and investment banks arebeing forced to unwind their positions, etc...

Time will tell, but I don't see oil dropping any lower than the range that I mentioned before resuming its upward climb.

You're right, if one has the liquid funds, this probably is a good time to start accumulating.